Answer: c. Once raised, capital does not have to be raised again.
Explanation:
Additional capital is more likely than not to be needed by a company as operations continue because new projects will need to be invested in that cannot be covered by the company's retained earnings but need to be invested in to grow and expand the business.
This is why companies issue bonds and debentures, go to financial institutions for loans and raise additional capital from secondary share offerings.
HELP ASAP! TIMED! A crisis management team does all of the following except _____ .
handle all service failures
oversee the situation before, during, and after it occurs
coordinate communications
instruct employees and customers
Andrea sued her former employer for a back injury she suffered on the job in 2019. As a result of the injury, she was partially disabled. In 2020, she received $240,000 for her boss of future income, $160,000 in punitive damages because of the employer's flagrant disregard for the employee's safety, and $15,000 for medical expenses. The medical expenses were deducted on her 2019 return, reducing her taxable income by $12,000. Andrea's 2020 gross income from the above is:
Answer:
$172,000
Explanation:
Calculation for what Andrea's 2020 gross income from the above is:
Using this formula
2020 gross income=Punitive damages+ Medical expenses deducted
2020 gross income=$160,000+$12,000
2020 gross income=$172,000
Therefore Andrea's 2020 gross income from the above is: $172,000
:How is a ‘provision for reserve’ in a balance sheet, a liability or an asset. Explain.
Explanation:
A provision is indeed an item freed up from either a company's revenue to cover potential future costs or a probable property price decrease. It shows up as spending on the financial statements and is documented as a current liabilities.
If the Hunter Foundation had decided to focus only on fighting measles, the
organization would no longer exist because measles is generally considered a
conquered disease. The Hunter Foundation switched its mission to fighting
contagious viruses. This example shows that ____
Explanation:
a good strategic plan cannot protect and grow firms resouces
What does Marketing mean to you?
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
a. Sold merchandise for $645 cash. The cost of goods sold was $375.
b. Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195.
c. Sold merchandise on account for $670. The cost of goods sold was $438.
d. Paid credit card fees for the month of $85.If an amount box does not require an entry, leave it blank.
Answer:
Evans Company
General Journal
Part a.
Debit : Cash $645
Debit : Cost of goods sold $375
Credit : Sales Revenue $645
Credit : Merchandise $375
Part b.
Debit : Cash $432
Debit : Cost of goods sold $195
Credit : Sales Revenue $432
Credit : Merchandise $195
Part c.
Debit : Accounts Receivable $670
Debit : Cost of goods sold $438
Credit : Sales Revenue $670
Credit : Merchandise $438
Part d.
Debit : Credit Card fees $85
Credit : Cash $85
Explanation:
The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.
what do you understand by marketing mix
Explanation:
When I think about the term marketing mix, I think about a set of tools that firms use to increase their profits such as price, product, promotion and place.
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 11 percent on the company's stock. a. What is the current stock price
Answer:
the current stock price is $19.25
Explanation:
The computation of the current stock price is shown below:
= Dividend × (1 + growth rate) ÷ (Required rate of return - growth rate)
= $1.10 × (1 + 0.05) ÷ (11% - 5%)
= $1.155 ÷ 6%
= $19.25
hence, the current stock price is $19.25
We simply applied the above formula
Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 1,968 hours per year. Product Reno has a unit contribution margin of $96 and requires four hours of painting department time. Product Tahoe has a unit contribution margin of $78 and requires three hours of painting department time.There are no other constraints.Assume that only 500 units of each product can be sold.Required:1. What is the optimal mix of products? If required, round your answers to the nearest whole number. Optimal MixReno unitsTahoe units2. What is the total contribution margin earned for the optimal mix?$
Answer:
Optimal product mix :Tahoe = 500 units, Renoe = 117 units
Total contribution = $50,232
Explanation:
When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate the scare resource for production purpose in such a way that it maximizes the contribution per unit of the scare resource.
Therefore Billing Company should allocate the painting hours to maximise the contribution per unit of painting hour
Product Reno Tahoe
$ $
Contribution per unit 96 78
Painting hour 4 3
Contribution per hour * 24 26
* = contribution per unit/painting hour per unit
Production mix
Product Unit Painting hour
Tahoe 500 1500
Renoe 117*** 468**
Total
**Balance of painting hour = 1968-1500= 468 hours
*** Unit of Renoe = 468/4=117 units
Optimal product mix = Tahoe = 500 units, Renoe = 117 units
Total contribution = (117× 96) + (500×78) = $50,232
During 2022 Swifty Corporation had sales on account of $765000, cash sales of $312000, and collections on account of $512000. In addition, they collected $8900 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable indicates a $244100 increase. $568000 increase. $565000 increase. $253000 increase.
Answer:
$253,000 increase
Explanation:
With regards to the above, there would be an increase in transaction. See computation below;
Given that;
Sales on account = $765,000
Collections on account = $512,000
Then,
The change in account receivables would be;
= Sales on account - Collections on account
= $765,000 - $512,000
= $253,000 increase.
Marigold Company uses the periodic inventory method and had the following inventory information available:
Units Unit Cost Total Cost
1/1 Beginning Inventory 98 $4 $392
1/20 Purchase 490 $5 2,450
7/25 Purchase 98 $7 686
10/20 Purchase 294 $8 2,352
980 $5,880
A physical count of inventory on December 31 revealed that there were 343 units on hand. Answer the following independent questions.
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $____the value of the ending inventory in dollars.
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $____the value of the ending inventory in dollars.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $_____the value of the ending inventory in dollars 4.
A) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $enter the amount of difference 4.
B) Would income have been greater or less?
Answer:
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $2,695.
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $2,058.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $1,617.
A) The difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method is $1,078.
B) The income would have been greater.
Explanation:
Total units available for sale = 980
Total cost of units available for sale = $5,880
Ending inventory units = 343
Units of inventory sold = Total units available for sale - Ending inventory = 980 - 343 = 637
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $____the value of the ending inventory in dollars.
Value of the ending inventory using FIFO method = Total cost of 294 units purchased on 10/20 + Value of remaining 49 (i.e. 343 - 294 = 49) units at $7 cost per unit of 7/25 Purchase = $2,352 + (49 * $7) = $2,695
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $____the value of the ending inventory in dollars.
Average cost per unit = Total cost of units available for sale / Total units available for sale = $5,880 / 980 = $6 per unit
Value of the ending inventory using average cost method = Ending inventory units * Average cost per unit = 343 * $6 = $2,058
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $_____the value of the ending inventory in dollars.
Value of the ending inventory using LIFO method = Total cost of 98 units of 1/1 Beginning Inventory + Value of remaining 245 (i.e. 343 - 98 = 245) units at $5 cost per unit of 1/20 Purchase = $392 + (245 * $5) = $1,617
A) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $enter the amount of difference
This can be determined as follows:
Difference = Value of the ending inventory using FIFO method - Value of the ending inventory using LIFO method = $2,695 - $1,617 = $1,078
B) Would income have been greater or less?
Since the Value of the ending inventory using FIFO method of $2,695 is greater than the Value of the ending inventory using LIFO method of $1,617, this implies that the income would have been greater.
This is because the cost of goods sold to be deducted from the sales revenue would have been lower with the higher Value of the ending inventory using FIFO method of $2,695. This would make the income to be greater.
Which phrase best completes the list?
Characteristics of Short-Term Savings Strategies
Earn low rates of interest
Include savings accounts at banks
?
O A. Are used mostly for retirement savings
O B. Are used to pay for expenses as they arise
O C. Include keeping money in your home
O D. Have a high risk of losing initial investments
Answer:
B
Explanation:
The Characteristics of Short-Term Savings Strategies Earn low rates of interest Include savings accounts at banks are used to pay for expenses as they arise. The correct option is (B).
What do you mean by the Short term savings?Short-term objectives typically have a five-year time frame. With a specific objective in mind or to establish a safety net in case an unforeseen expense arises, you might open a short-term savings account. Examples of short-term objectives a reserve account.
Depending on the investment firm, short-term investments typically offer an investment period of less than a year. This benefit is strongly connected to benefit. You can withdraw from short-term investments at any time, especially in an emergency, due to their flexibility.
Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
Therefore, the Characteristics of Short-Term Savings Strategies Earn low rates of interest Include savings accounts at banks are used to pay for expenses as they arise.
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consider ktu as a production system in which the final product is graduate for this
a) define quality form the producers and consumers perspective
b) develop fitness for use description for final product quality
c) give examples of the cost of poor quality ( internal and and external failure cost ) and the cost of quality assurance ( prevention and appraisal) costs.
Which of the following describes a move away from capitalism?
O A. Sweden's 1980s cutback on social programs
O B. the transformation of the former Soviet Union to today's Russia
O C. the nationalization of major industries in Hugo Chavez's Venezuela
OD. economic reforms following the Great Depression in the United States
Answer:
B
Explanation:
The answer is b because the soviet union was a dictaorship before it became Russia so when it became Russia it moved away from capitalism.
Answer:
C
Explanation:
I put b on the first quiz and got it wrong I promise its c!!!!
Your mayor just announced that the local unemployment rate dropped from 10.5% to 10.4% from the prior month. Evaluate the unemployment rate drop and discuss whether there is enough information to determine statistical significance, which Hypothesis Test you would use, and what additional information you would need if any. Support your response with specific examples and a reference. In replies to peers, discuss whether you agree or disagree with their assessments, justify your response, and state which other specific hypothesis tests could be used to test the significance of the drop.
Answer:
We do not have sufficient information
Explanation:
From this question we do not have sufficient information to test how significant this claim by the mayor is. This mayor has only given us the estimated proportion of the drop in unemployment rate. We will need to have more data to carry out hypothesis testing but these were not given.
Here is an example
Let's say n = size = 500
and 51% are unemployed
51/500*100 = 10.2%
The size of the population is what would tell us if the change from 10.5 to 10.4 percent is significant or not.
Ellcrys Corp. writes 71 checks a day for an average amount of $537 each. These checks generally clear the bank 3.75 days after they are written. In addition, the firm generally receives 68 checks with an average amount of $622 each. Deposited amounts are available after an average of 3.25 days. Is this a disbursement or collection float? What is the value of the float?
Answer:
Yes
Disbursement float of $5,515
Explanation:
Yes Based on the information given this a DISBURSEMENT FLOAT
Calculation to determine the value of the float
First step is to calculate the Disbursement float
Disbursement float = 71 × $537 × 3.75 days
Disbursement float = $142,977
Second step is to calculate the Collection float
Collection float = 68 × $622 × 3.25 days
Collection float = $137,462
Now let calculate the value of the float
Value of the float =$142,977 - $137,462
Value of the float = $5,515
Therefore the Value of the float will be $5,515
Keystone, Inc., replaced its truck-and-dolley system of moving inventory around its plant with a computer-controlled conveyor system. The costs associated with this equipment replacement were as follows: Purchase price of conveyor system$1,300,000 Book value of truck-and-dolley system50,000 Installation cost of new conveyor system85,000 The truck-and-dolley system was sold for scrap for $70,000. What value should be capitalized to the balance sheet of Keystone, Inc., as the cost basis of the new conveyor system
Answer: See explanation
Explanation:
The cost basis for the new conveyor system will be:
Purchase price = $1,300,000
Add : Installation cost = $85,000
Therefore, Cost of new conveyor system will be:
= $1,300,000 + $85,000
= $1,385,000
The gain on the sale of old truck will be $70000 - $50000 = $20,000 whcinwill be credited to the income statement.
Barbur, Inc. reported net income of $20.35 million. During the year the average number of common shares outstanding was 3.7 million. The price of a share of common stock at the end of the year was $5. There were 680,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is non-cumulative.
1A. Use the information above, the EPS is approximately:_____.
a. $0.40.b. $1.76.c. $1.86.d. $2.00.
1B. Use the information above, the Price/Earnings ratio is approximately:_____.a. 2.00.b. 2.50.c. 2.84.d. 12.50.
Answer and Explanation:
The computation is shown below:
a. EPS = Net income ÷ Outstanding shares
= $20,350,000 ÷ 3,700,000 shares
= $5.50 per share
b. Price/Earnings ratio = Price of common stock ÷ EPS
= $5 ÷ $5.50
= 0.9091
Hence, the above represent the answer and the options that are given are incorrect
In most restaurants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customers. However, many restaurants receive a 15% tip for parties of eight or more. Using the concept from this chapter, discuss (a) why the practice of tipping has emerged as a major method of compensating the wait staff, (b) why the customer typically decide on the amount of the tip, and (c) why restaurants require tips from large parties
Answer:
a) tipping is seen as a reward for a good service provided. It is also a way of passing labor costs directly to the customer, which increases the restaurants' profits.
b) generally, most restaurant charge a fixed fee for tips. Maybe in the past customers could decide the tip, but that is not true now for most places. Although, customers are better judges of the service that they receive. By the way, the 15% is the minimum tip, customers can choose to increase that amount.
c) if the restaurants did not require tips, their labor costs would increase significantly.
Explanation:
Money is: multiple choice any good that buyers and sellers have a desire to purchase, use, or hold. anything that both buyers and sellers will accept in exchange for goods and services. the gold and silver behind the currency and the coins that are issued by the government. only the printed paper currency and the coins that are produced by the government.
Answer:
Money is: any good that buyers and sellers have a desire to purchase, use, or hold. only the printed paper currency and the coins that are produced by the government. anything that both buyers and sellers will accept in exchange for goods and services. the gold and silver behind the currency and the coins that are issued by the government.
Explanation:
if it is helpful..... plzz like and follow
Answer:
Money is: anything that both buyers and sellers will accept in exchange for goods and services
Explanation:
Money is not a good to be desired, but is a representation of value. Money is anything that is accepted as payment for goods or services or as repayment of debt. According to economists, money refers to something beyond just paper bills and coins. It is a medium of exchange, unit of account and store of value. Money can be used to transport purchasing power from one time period to another.
Larry Ellison starts a company that manufactures high-end custom leather bags. He hires two employees. Each employee only begins working on a bag when a customer order has been received and then she makes the bag from beginning to end. The average production time of a bag is 1.8 days with a standard deviation of 2.7 days. Larry expects to receive one customer order, per day on average. The arrival process follows a Poisson distribution. What is the expected duration, in days, between when an order is received and when production begins on the bag
Answer:
12.55 days.
Explanation:
Arrival time (a) = 1 day
Coefficient of variation of arrival (CVa) = 1
Processing time (p) = 1.8 days
Standard deviation for processing = 2.7 days
Coefficient of variation for processing = Standard deviation for processing/ Processing time
Coefficient of variation for processing (CVp) = 2.7/ 1.8
Coefficient of variation for processing (CVp) = 1.5
Given, number of servers (m) = 2
Utilization of system (u) = p/(m×a)
Utilization of system (u) = 1.8/(2×1)
Utilization of system (u) = 0.9
Let waiting time in the queue = Tq
Formula for waiting time in queue is quite complicated to write it here. SO, I have attached in the attachment below. Please refer to the attachment to see the formula for Tq.
SO, after plugging in the values in to the formula, we get:
Tq = 12.55 Days
Therefore, the Expected duration between when an order is received and when production begins = 12.55 days
Applying the Cost of Goods Sold Model The following amounts were obtained from Stanwick Company's accounting records. 2019 2020 Net sales $388,600 $427,460 Cost of goods sold: Beginning inventory $36,800 (d) Purchases (a) 296,700 Goods available for sale (b) (e) Ending inventory 42,060 (f) Cost of goods sold (c) 295,390 Gross margin $117,960 (g)
Answer:
See below
Explanation:
2020 Beginning inventory
Beginning inventory
Add: Purchases
$296,700
Cost of goods available for sale
$296,700
Less: Ending inventory
($1,310)
Cos of goods sold
$295,390
2019 Purchases
Purchases = Ending inventory - Beginning inventory
Purchases = $42,060 - $36,800
Purchases = $5,260
Exercise 3-1 Prepare Journal Entries [LO3-1] Larned Corporation recorded the following transactions for the just completed month. $75,000 in raw materials were purchased on account. $73,000 in raw materials were used in production. Of this amount, $59,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $116,000 were paid in cash. Of this amount, $102,000 was for direct labor and the remainder was for indirect labor. Depreciation of $194,000 was incurred on factory equipment.
Answer:
Journal 1
Debit : Raw Materials $75,000
Credit : Accounts Payable $75,000
Journal 2
Debit : Work In Process - Direct Materials $59,000
Debit : Work In Process - Indirect Materials $14,000
Credit : Raw Materials $73,000
Journal 3
Debit : Work In Process - Direct Labor $102,000
Debit : Work In Process - Indirect Labor $14,000
Credit : Cash $116,000
Journal 4
Debit : Work in Process - Depreciation expense $194,000
Credit : Accumulated Depreciation $194,000
Explanation:
All costs incurred during production are recorded on the debit of the work in process account as shown above.
Zachary Corporation produces products that it sells for $18 each. Variable costs per unit are $6, and annual fixed costs are $247,200. Zachary desires to earn a profit of $39,600. Required Use the equation method to determine the break-even point in units and dollars. Determine the sales volume in units and dollars required to earn the desired profit.
Answer:
See below
Explanation:
Break even point is computed as
= Fixed cost + desired profit/ Contribution margin
Where ;
Contribution margin = Selling price per unit - Variable cost per unit.
Break even point
= $247,200 + $39,600 / ($18 - $6)
= $247,200 / $12
= 23,900 units
Riverbed Corporation is preparing its December 31, 2020, balance sheet. The following items may be reported as either a current or long-term liability.
1. On December 15, 2020, Riverbed declared a cash dividend of $2.20 per share to stockholders of record on December 31. The dividend is payable on January 15, 2021. Riverbed has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury.
2. At December 31, bonds payable of $101,599,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $25,399,750 every September 30, beginning September 30, 2021.
3. At December 31, 2019, customer advances were $13,686,000. During 2020, Riverbed collected $30,897,000 of customer advances; advances of $26,671,000 should be recognized in income.
For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any.
a. Dividends payable
b. Bonds payable (September 30, 2018 installment)
c. Bonds payable (Other than September 30, 2018 installment)
d. Interest payable
e. Customer advances
Alex Karev has taken out a $ loan with an annual rate of percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $ per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $ per month? Use five decimal places for the monthly percentage rate in your calculations.
Answer:
the question is incomplete, so I looked for a similar one:
Alex Karev has taken out a $180,000 loan with an annual rate of 11% compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $4,000 per month?
PVIFA = $180,000 / $3,500 = 51.42857
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
51.42857 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.47143 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.47143 = 0.52857
1 / 0.52857 = (1 + 0.11/12)ⁿ
1.89189 = 1.009167ⁿ
n = log 1.89189 / log 1.009167 = 0.2769 / 0.003963 = 69.87
n = 69.87 months
PVIFA = $180,000 / $4,000 = 45
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
45 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.4125 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.4125 = 0.5875
1 / 0.5875 = (1 + 0.11/12)ⁿ
1.70213 = 1.009167ⁿ
n = log 1.70213 / log 1.009167 = 0.23099 / 0.003963 = 58.29
n = 58.29 months
53) In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Borden expects returns in the following year to equal 8% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of $6,000, and the unadjusted balance in Sales Refund Payable is a credit of $10,000. The adjusting entry or entries to record the expected sales returns is (are):
Answer: See explanation
Explanation:
The adjusting entry or entries to record the expected sales returns are:
Debit: sales return and allowance = $150,000
Credit: Sales refund payable = $150,000
The above $150,000 was gotten as:
= ($2,000,000 × 8%) - $10,000
= ($2,000,000 × 0.08) - $10,000
= $160,000 - $10,000
= $150,000
Also,
Debit: Inventory returns estimated = $90,000
Credit: Cost of goods sold = $90,000
The above $90,000 was gotten as:
= ($1,200,000 × 8%) - $6,000
= ($1,200,000 × 0.08) - $6,000
= $96,000 - $6,000
= $90,000
Required information Required information Skip to question Petty cash payments are payments of small amounts for items such as postage, courier fees, minor repairs, and supplies. A company usually sets up one or more petty cash funds. A petty cash fund cashier is responsible for safekeeping the cash, making payments from this fund, and keeping receipts and records. A Petty Cash account is debited only when the fund is established or increased in amount. When the fund is replenished, petty cash payments are recorded with debits to expense (or asset) accounts and a credit to Cash. Knowledge Check 01 Recall on February 1, Derrick Company established a $200 petty cash fund. On February 15, when the fund balance reached $7, the petty cash custodian prepared a petty cash report that summarized receipts for postage ($140) and printing ($54). Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Dr Postage expense $140
Dr Printing charges $54
Cr Cash $193
Cr Cash over and short $1
Explanation:
Preparation of the l necessary journal entry
Based on the information given the journal entry will be :
Dr Postage expense $140
Dr Printing charges $54
Cr Cash $193
($140+$54-$1)
Cr Cash over and short $1
{$7-[$200-($140+$54)]}
[$7-($200-$194)]
($7-$6=$1)
Presented below is information from Bramble Computers Incorporated. July 1Sold $20,000 of computers to Robertson Company with terms 3/15, n/60. Bramble uses the gross method to record cash discounts. Bramble estimates allowances of $1,300 will be honored on these sales. 10Bramble received payment from Robertson for the full amount owed from the July transactions. 17Sold $200,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30The Clark Store paid Bramble for its purchase of July 17.
Prepare the necessary journal entries for Perez Computers.
Answer and Explanation:
The journal entries are shown below:
On July 1
Account receivable $20,000
To Sales revenue $20,000
(Being sales is recorded)
Sales return and allowance $1,300
To Allowance for sales returns and allowance $1,300
(Being the estimation of the sales return is recorded)
On July 1
Cash ($20,000 × 97%) $19,400
Sales discount $600
To Account receivable $20,000
(being cash is recorded)
On July 17
Account receivable $200,000
To Sales revenue $200,000
(Being account receivable is recorded)
On July 30
Cash $200,000
To Account receivable $200,000
(Being cash is recorded)
TVLand sells home entertainment systems and also offers a complementary installation service. The same service is offered by other vendors for $50 on average, and TVLand typically charges approximately 40% more than other vendors for similar services on a stand-alone basis. Using the adjusted market assessment approach, the stand-alone selling price of the installation service is:
Answer:
$70
Explanation:
Calculation to determine what the stand-alone selling price of the installation service is:
Stand-alone selling price= $50 + (40%*$50)
Stand-alone selling price=$50+$20
Stand-alone selling price= $70
Therefore the stand-alone selling price of the installation service is:$70